Gold Trading Japanese Candles

XAUUSD with Candle

Brief History

Candlesticks were created in the 18th century by the legendary rice trader called Homma Munehisa to give overview of opening, high, low & closing market price over a specified period of time.

They were used by the legendary rice trader for predicting future market prices. After dominating trading the rice market, Munehisa after that eventually moved to the Tokyo Exchange where he gained huge fortunes using this analysis method. He's said to have made more than a 100 consecutive winning trades.

Types of charts

There are Three types of charts that are used in XAUUSD: Line, bar & candlesticks.

Line - draws a continuous line connecting closing prices of gold.

Japanese Candlesticks Candlestick - XAUUSD Using Candles - Candlestick Chart Trading Charts

Bars - highlighted as sequence of O-H-C-L bars. OHCL represents OPEN HIGH LOW & CLOSE. Opening price is highlighted as a horizontal hyphen on the left and closing price as a horizontal hyphen on the right.

XAUUSD Using Candle - What are the Candlestick Setups that Traders Should Know?

The main disadvantage of a bars is that it isn't visually appealing, henceforth most traders do not use them.

Candlesticks Patterns - Japanese Candle Charting Techniques - these use the same price info as bar charts (open, high, low, & close). However, they are represented in a much more easily identifiable way that resembles a candlestick that has wicks on both ends.

How to Interpret Japanese Candlestick Charting Techniques

The rectangle part section is referred to as the body.

The high and low are referered to as shadows and drawn as poking lines.

Japanese Candlesticks Candlestick Setups - XAUUSD Using Candle - Candlestick Setups Examples

The colour is either blue or red

(Blue or Green Color) - Prices went up
(Red Color) - Prices headed down

Most platforms like the MT4, use colours to mark direction. Colours used are blue or green: when price moves up, red: when the price moves down.

Japanese Candlesticks Candles Setups - XAUUSD Using Candle - What Do Trading Candle Mean in Trading?

Candlesticks Vs. Bar Chart

When candles are used it's very easy to see if the price headed up/down as compared to when bar charts are used.

The Japanese Candlestick Charting Methods also have many trade formations which are used by traders to trade the market. Japanese Candle Charting Methods - candles patterns have different analysis interpretation and the most common Japanese Candle Charting Techniques are:

Marubozu Candlestick Setup and Doji Candlestick Pattern

Spinning Tops

Reversal Setups

Inverted Hammer Candle Pattern & Shooting Star Candlestick Pattern

Piercing Line Candle Setup & Dark Cloud Candle Pattern

Morning Star Candles & Evening Star Candles

The above Japanese Candlestick Charting Techniques and Patterns is what makes the Japanese candlesticks popular among trade technical traders and it's why this type of analysis are most commonly used when it comes to analyzing the market. The analysis for these Japanese candle-sticks formations in trade is the same as that one used in stocks trading - Japanese Candle Charting Techniques.

Drawing japanese Candles Charts on MetaTrader 4 Platform

To draw these on the MetaTrader 4, select the MT4 charts drawing tools within the "MT4 Tool-Bar" - illustrated below.

How Do you Identify a Trading Candlestick Pattern? - How Do I Analyze Candle Setups Trading Strategies?

To view this tool bar on MetaTrader 4 go to 'View' Next to file tab at top-left corner of MT4 Platform, Press 'View', Then Click 'Toolbars', Then check 'Charts' Button. Above tool-bar will appear.

Once the above tool bar, pops up you can then select the type you as a trader want to convert to, If you as a trader want to view using the bar format, click the bar tool button as illustrated above, for line format press the line tool button, for Japanese candlesticks format click "candlesticks tool button".

Gold Trading Japanese Candlesticks. Japanese Candlesticks Candle Sticks Setups - Gold Trading Using Candlesticks. Trading with Candle - Trade with XAUUSD Candle Pattern

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